Form 4: MetLife Investment Management Redeems ACV Preferred Shares

MetLife Investment Management, LLC reported the full redemption of 1,200,000 Series A Mandatory Redeemable Preferred Shares from Virtus Diversified Income & Convertible Fund (ACV) at $25.00 per share.

Summary

• MetLife Investment Management, LLC reported a change in beneficial ownership for Virtus Diversified Income & Convertible Fund (ACV).
• The transaction involved the full redemption of 1,200,000 Series A Mandatory Redeemable Preferred Shares.
• The redemption occurred on October 2, 2025, at the original purchase price of $25.00 per share.
• Accrued and unpaid dividends were also paid, which are exempt from Section 16 reporting.
• Following this transaction, MetLife Investment Management, LLC's beneficial ownership of these specific preferred shares is 0.
• The shares were held indirectly by a client for whom MetLife Investment Management, LLC acts as an investment manager.

Sentiment

Score: 6

Explanation: The redemption of mandatory preferred shares is a neutral event, as it's typically pre-scheduled. However, for the issuer (ACV), it represents a reduction in preferred equity obligations, which can be seen as a slight positive for its capital structure management. For the reporting person, it's a routine transaction as an investment manager.

Positives

• Virtus Diversified Income & Convertible Fund (ACV) has fully redeemed 1,200,000 Series A Mandatory Redeemable Preferred Shares, reducing its preferred share obligations.
• The redemption was at the original purchase price, indicating no loss on the principal for the preferred shareholders.

Negatives

• No specific negative points are directly discernible from this redemption report for either the issuer or the reporting person.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding future performance or strategic direction.

Management Comments

• The Reporting Person disclaims beneficial ownership of the securities reported herein, except to the extent of its pecuniary interest therein, and this report shall not be deemed an admission that the Reporting Person is the beneficial owner of such securities for purposes of Section 16 of the Exchange Act, or for any other purpose.

Industry Context

This transaction represents a routine redemption of preferred shares, common in the investment fund industry as part of capital structure management or as scheduled maturity events. For Virtus Diversified Income & Convertible Fund, it signifies a reduction in its outstanding preferred equity, potentially impacting its cost of capital and leverage profile. For MetLife Investment Management, it reflects the execution of a client's investment strategy, consistent with its role as an investment manager.

Comparison to Industry Standards

• This is a standard redemption of mandatory redeemable preferred shares, which are typically structured with a fixed redemption date. Such redemptions are common across closed-end funds and other investment vehicles that utilize preferred equity for financing.
• The redemption at the original purchase price plus accrued dividends is a standard term for such instruments, aligning with typical market practices for preferred share redemptions.

Stakeholder Impact

• Shareholders (ACV): The redemption reduces preferred share obligations, potentially improving the fund's financial flexibility and reducing dividend payment requirements on preferred stock.
• Preferred Shareholders (MetLife's client): Received the full principal amount plus accrued dividends, fulfilling the terms of their investment.

Next Steps

• No specific future actions or milestones are mentioned in this filing.

Key Dates

Keywords

MetLife Investment Management, Virtus Diversified Income & Convertible Fund, ACV, Preferred Shares, Redemption, SEC Form 4, Beneficial Ownership, Investment Management